Curtis Secures Landmark Victory in US$5 billion Claim before English High Court

London, 17 January 2025 – Curtis has obtained a comprehensive victory for Transneft, the pipeline transport company headquartered in Moscow, Russia, in the dismissal of a US$ 5 billion claim before the English High Court in a judgement published today.

In a resounding legal victory, Transneft has emerged successful in a major jurisdictional challenge before the English High Court, seeing off a US$5 billion claim brought by Mr Ziyavudin Magomedov and others relating to NCSP (Novorossiysk Commercial Sea Port).

What was the case about?

Mr Ziyavudin Magomedov and others filed claims against twenty-two Defendants, seeking almost US$ 15 billion in total compensation over his holdings in port operators, which he argued were seized as part of a state-backed conspiracy in the context of two alleged conspiracies: (i) the “FESCO Conspiracy”, and (ii) the “NCSP Conspiracy”. Transneft was only alleged to have been a party to the “NCSP Conspiracy”.

Following a five-day hearing in November 2024, the Court’s judgment comprehensively favoured Transneft, resulting in the dismissal of the US$ 5 billion claim relating to the so-called “NCSP Conspiracy”.

What did the English High Court rule?

In a judgement handed down on 17 January 2025, the Court ruled that:

• none of the pleaded jurisdictional gateways were available in relation to the alleged NCSP Conspiracy;
• there was no serious issue to be tried against Transneft in relation to the allegations;
• the applicable law to the alleged claims was Russian law, such that they were time-barred (preferring the expert evidence offered by Transneft); and
• Mr Magomedov and others had committed serious breaches of their obligations of full and frank disclosure, providing a further standalone reason for dismissal.

Curtis Partner Sebastiano Nessi says that “this judgment sends a clear message: Transneft will not tolerate baseless allegations and will vigorously contest any further claims made by Mr. Magomedov or his affiliates, whether in England or elsewhere.”

Curtis Partner William Hampson adds that “this is a very significant and comprehensive victory for Transneft, and we are delighted to have assisted in having these meritless, yet aggressively pursued, claims dismissed.”

This is the second legal victory obtained by Transneft against multibillion-dollar claims brought by Mr. Magomedov and others.

In September 2024, Curtis assisted Transneft in securing a decision from the Stockholm Chamber of Commerce (“SCC”) throwing out the same US$ 5 billion claim, after the SCC concluded that it manifestly lacked jurisdiction to hear the claims brought by British Virgin Islands-registered Port-Petrovsk, which is controlled by Russian businessman Ziyavudin Magomedov, against Transneft in the context of the alleged NCSP Conspiracy.

The Curtis team representing Transneft was led by London-based partner William Hampson and Geneva-based partner Sebastiano Nessi, and included associates Sena Tsikata, Medi Coulson, Arthad Kurlekar, Harry Draper and trainee Jessica Simpson.